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TAX PHASE-IN PROGRAM
A person seeking declaration of an area as an economic revitalization area shall file a statement of benefits (for redevelopment or rehabilitation of property, new manufacturing equipment and/or new research and development equipment) and an application with the Department of Economic Development on the form or forms which may be prescribed by the Department of Economic Development, County Council and/or the State Board of Tax Commissioners. The application must be filed with the Department of Economic Development (Department), prior to commencement of the project or the ordering of any equipment.
COMMENCEMENT OF THE PROJECT shall mean prior to the issuance of a building permit for real estate improvements. ORDERING EQUIPMENT shall mean issuance of the purchase order for equipment or other commitment to purchase or obtain the equipment by the applicant.
(A) Submission requirements. The application shall be submitted in a quantity as may be specified by the Department. For projects seeking tax phase-in for real estate improvements, a site plan shall also be submitted, which shows all buildings, parking areas, driveways, etc.
(B) Resolution requirements. The Department shall prepare the preliminary and confirming resolutions for each tax phase-in project. The resolutions shall include the information required by I.C. 6-1.1-12.1 et seq., including the legal description or other suitable description of the property being designated as an economic revitalization area; the length of time during which the economic revitalization area designation shall be in effect (generally to include two complete tax years and ending on March 1); whether the designation is for real estate improvements, new manufacturing equipment or new research and development equipment; and the length of deduction.
(C) Staff review. The Department shall review each application for completeness and accuracy, gather and provide additional information needed by the County Council to make an appropriate decision, analyze the application and supplemental material and comment generally on the acceptability of the request for economic revitalization area declaration. The Department shall assess the impact of phase-in on the feasibility of the project. The Department shall score the application based on the applicable tax phase-in scoring established and attached as Exhibit A to Board of County Commissioners Resolution 2006-07. This score will be used only as a guide by County Council to determine a maximum allowable phase-in term. The Department and the County Council shall review the scoring system at least annually.
(D) Recommendation of Economic Development Advisory Council. Before an application and resolution is submitted to the County Council, the Department shall present application and scoring to the Economic Development Advisory Council for its review and recommendation.
(E) It is highly recommended that a representative for the project and/or legal counsel be present and prepared to speak about the proposed project at each County Council and Economic Development Advisory Council meetings where the request for tax phase-in for the project is on the agenda.
(CC Res. 2006-07, passed 5-4-06)
(A) Declaration of an economic revitalization area will be considered for projects in the following categories:
(1) Manufacturing;
(2) Warehousing and distribution;
(3) New research and/or high technology facilities;
(4) Renovation of vacant manufacturing facilities;
(5) Office buildings;
(6) Recreational and commercial (retail) facilities as defined in I.C. 6-1.1-12.1-3(e) that are located in an economic development target area which have been designated by the Economic Development Commission and the County Council pursuant to I.C. 6-1.1-12.1-7;
(7) New manufacturing equipment; and
(8) New research and development equipment.
(B) An application for declaration as an economic revitalization area shall meet one or more of the following criteria:
(1) The property, or area, is undesirable for, or impossible of, normal development and occupancy because of a lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings or other factors which have impaired values or prevent a normal development or use of property.
(2) A property or area which includes a facility or a group of facilities that are technologically, economically, or energy obsolete and where the obsolescence may lead to a decline in employment and tax revenues.
(C) An application shall also address at least one of the following development objectives:
(1) Generate the use of vacant or underutilized land;
(2) Rehabilitate or replace obsolete, deteriorated, vacant or underutilized buildings;
(3) Retain or expand job opportunities; or
(4) Preserve historically or architecturally significant properties.
(D) Exclusions. Certain areas of the county have been, or may in the future be, designated as "tax allocation areas" pursuant to I.C. 36-7-14-39, through the adoption of redevelopment plans with tax increment financing provisions. Areas within a tax allocation area shall not be considered for declaration as an economic revitalization area unless said tax phase-in is approved by a resolution of the County Redevelopment Commission. At the time of the adoption of this resolution, the following areas of the county were designated as tax allocation areas.
(1) Epworth Road Economic Development Area; and
(2) State Route 62 Economic Development Area.
(CC Res. 2006-07, passed 5-4-06)
(A) Application. Pursuant to I.C. 6-1.1-12.1-5, the owner of property which has been declared to be an economic revitalization area and who desires to obtain the tax deduction provided by I.C. 6-1.1-12.1-3 for "property" must file a certified deduction application, on forms prescribed by the State Board of Tax Commissioners, with the County Auditor before May 10 (except as otherwise provided in I.C. 6-1.1-12.1-5(b) or (e)) of the year in which the addition to the assessed value is made.
(B) Length of deduction.
(1) For projects for which the statement of benefits was approved July 1, 2000, or after except as provided in I.C. 6-1.1-12.1-3(a), for redevelopment or rehabilitation is eligible for a deduction from the increase in assessed value for a period of one to ten years.
(2) For projects for which the statement of benefits was approved before July 1, 2000, for redevelopment or rehabilitation is eligible for a deduction from the increase in assessed value for periods of three, six, or ten years.
(CC Res. 2006-07, passed 5-4-06)
(A) Application. Pursuant to I.C. 6-1.1-12.1-5.5, the owner of property which has been declared to be an economic revitalization area and who desires to obtain the tax deduction provided by I.C. 6-1.1-12.1-4.5 for "new manufacturing equipment" must file a certified deduction application, on forms prescribed by the State Board of Tax Commissioners with the County Auditor and with the State Board of Tax Commissioners. A deduction application must be filed in the year in which the new manufacturing equipment is installed and in each of the following years for which abatement is sought.
(B) Length of deduction. For projects for which the statement of benefits was approved July 1, 2000, or after except as provided in I.C. 6-1.1-12.1-4.5(g), an owner of new manufacturing equipment is eligible for a deduction from the assessed value of that equipment for a period of one to ten years.
(CC Res. 2006-07, passed 5-4-06)
(A) Application. Pursuant to I.C. 6-1.1-12.1-5.5, the owner of property which has been declared to be an economic revitalization area and who desires to obtain the tax deduction provided by I.C. 6-1.1-12.1-4.5 for "new research and development equipment" must file a certified deduction application, on forms prescribed by the State Board of Tax Commissioners with the County Auditor and with the State Board of Tax Commissioners. A deduction application must be filed in the year in which the new research and development equipment is installed and in each of the following years for which phase-in is sought.
(B) Length of deduction. For projects for which the statement of benefits was approved July 1, 2000, or after except as provided in I.C. 6-1.1-12.1-4.5(g), an owner of new research and development equipment is eligible for a deduction from the assessed value of that equipment for a period of one to ten years.
(CC Res. 2006-07, passed 5-4-06)
In the event that a business decides to initiate an additional investment which was not included in its tax phase-in application and is of the same type of investment (real estate improvements, new manufacturing equipment or research and development equipment) for which the economic revitalization area was designated and said designation is still in effect, the business shall submit a new statement of benefits form to the Department before initiating (as discussed in § 36.30) the additional investment. The Department shall prepare a resolution for County Council action to approve the subsequent statement of benefits.
(CC Res. 2006-07, passed 5-4-06)
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